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Spotify will return with another top-shelf performers lineup for their marquee four-day country music showcase, Spotify House, at this year’s CMA Fest in Nashville, slated for June 8-11.
Spotify House will once again take over Blake Shelton and Opry Entertainment Group’s Ole Red music venue in downtown Nashville for the four-day music showcase, which will feature Brad Paisley, Brothers Osborne, Dierks Bentley, Hailey Whitters, Ingrid Andress, Jordan Davis, Luke Grimes, Mickey Guyton, Old Dominion, Lady A and Ruston Kelly on the Mainstage over the weekend.
The full Mainstage lineup also features Alana Springsteen, Ashley Cooke, Avery Anna, Brett Young, Brian Kelley, Chase Rice, Chayce Beckham, Chris Young, Colbie Caillat, Conner Smith, Dalton Dover, Danielle Bradbery, Dylan Marlowe, Dylan Schneider, Ella Langley, Ian Munsick, Jon Pardi, Josh Ross, Kameron Marlowe, Kylie Morgan, Lily Rose, Mackenzie Carpenter, Mitchell Tenpenny, Restless Road, Riley Green, Sam Hunt, Tanner Adell, Tenille Arts, Warren Zeiders and 49 Winchester.
The Mainstage’s daily (and nightly) lineup is presented by Spotify’s Nashville team and Spotify’s flagship Hot Country playlist. Spotify is also bringing back the Fresh Finds stage to further support their commitment to supporting rising musical talents, with the lineup to be announced in the coming weeks.
For fans who want to hit the dance floor, Spotify House will also offer exclusive late-night DJ sets, including Diplo Presents Thomas Wesley, as well as Cheat Codes + Friends.
“The Spotify House has become a CMA Fest staple and we couldn’t be more excited to be returning to Ole Red again this year,” said Jackie Augustus, lead, country & folk, artist partnerships at Spotify. “As always, we wanted the lineup to reflect the trends and discoveries that listeners have been making on platform. Every year the genre expands into new influences and sounds, so we’re looking forward to giving the fans an opportunity to experience 2023 country in its fullest. And as always, we have a few surprises up our sleeves, so you never know who might show up on our stage…”
Country music fans can stop by Spotify House on Thursday, June 8, through Saturday, June 10, from 11 a.m. to 2 a.m. CT daily, and Sunday, June 11, from 11 a.m. to 6 p.m. CT. All shows will be open to the public, and space will be limited to first-come, first-served.
A medley of sounds erupts as soon as the doors of the Spotify studio swing open. All at once, trumpets climb up and down scales, guitars are tuned before being fervidly strummed, and a tololoche player’s fingers dance across the strings of an upright bass like tiny bolts of lightning, making it impossible to look away. All the while, the group of men responsible crack jokes in Spanish, an air of excitement swirling through the dimly-lit room before the Spotify RADAR shoot kicks off.
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At the center of this eclectic flurry of instruments lives regional Mexican music. At the center of today’s regional Mexican music, lives Peso Pluma.
For many, the 23-year-old phenom appeared de la nada. “Ella Baila Sola,” Eslabon Armado’s smash hit with Peso Pluma, was as explosive a collaboration in the Spanish-language music space as the Hot 100-topping “Boy’s a Liar Pt. 2” was for the English market. Like drill princess Ice Spice, Peso Pluma became the de facto face of a movement overnight, much to his own surprise.
“I knew this was gonna happen, but I didn’t know at what level and what speed,” he says today. “I knew I was gonna do good in Mexico and the Spanish-speaking countries, but this went worldwide [so fast]. I’m thankful for that.”
For his early fans, Peso Pluma has been creating earworm collaborative anthems for a handful of years, through early hits like “El Belicón” alongside Raúl Vega – which went viral on social media and brought in 10 million views on YouTube in a single month – and projects including his debut set, Ah y Qué?
To date, “Ella Baila Sola” has secured a number of firsts, most notably becoming the first regional Mexican song to reach the top 10 of the Hot 100 chart — peaking at No. 5 – and the first to top Billboard‘s Streaming Songs chart in its 10-year history.
Peso Pluma and Eslabon Armado also broke a number of Spotify records, becoming the all-time most-streamed música mexicana track in one day globally and the most streamed Latin track in the U.S in one single day last month.
“Música mexicana is no longer regional – it’s global,” says Spotify head of U.S. Latin artist partnerships Eddie Santiago, noting the genre’s growth of 431% over the last five years. “It’s been incredible supporting Peso Pluma’s meteoric rise, and look forward to this next phase of his career.”
The Spotify RADAR program – dedicated to spotlighting and supporting emerging artists at all stages of their development – has provided a platform for artists across the globe, including The Kid LAROI, Zach Bryan, Doechii, Quevedo, PinkPatheress, and over 500 others since its start in in 2020.
While the effect of “Ella Baila Sola” has led to unprecedented global attention on the regional Mexican space, it’s important to note that the regional Mexican genre isn’t exactly a genre. Encompassing an array of unmistakably Mexican styles of music, including norteño, corridos, banda, rancheras, mariachi and more, regional Mexican serves as an overarching umbrella term for a set of genres that had never before been afforded nuance on a mainstream level.
Growing up on artists like Ariel Camacho, Peso Pluma, born Hassan Laija, developed his love for música mexicana as a kid spending his early years growing up in Guadalajara, Jalisco, Mexico. Later, the influence of hip-hop and reggaeton also found their way into the songs he’d write. Today, he painstakingly stitches together 19th century Mexican sounds with modern genres, bringing both to the Spotify stage ahead of his upcoming debut album, and a single that he’s been teasing on social media.
After his performance, Peso Pluma sat down to talk with Billboard about what the Spotify look means to him, his recent wins on U.S. platforms, his Doble P Tour and his hopes for the future.
What does it mean to you to be selected as Spotify’s RADAR artist?
It’s pretty big to me because I’m the first Mexican artist to do this. I’m so proud and very thankful. It’s big for the country, the genre and the industry in general. We’re doing pretty good and we’re going to keep working to share our music.
Have you had fans from countries that surprise you?
I have a lot of fans all over the world, but the most surprising was one time I was shopping and a Chinese family came [up to me]. I never thought they’d listen to corridos in China.
What are the genres that have influenced you?
When I was a teenager, I listened to a lot of hip-hop, rap, and reggaetón. Rap culture just got into me, and I think I’m picking a little bit from every genre in the corridos I do and that’s why people like it, because it has a lot of different cultures in it. Reggaetón is the most iconic genre in my life. Since I was a kid, I liked it a lot. Daddy Yankee, Don Omar, Tego Calderon.
I like Bad Bunny a lot, I listen to him all day, every day. I listen to my friend Natanael Cano, 21 Savage, Shoreline Mafia. Feid, Anuel, Karol G. I listen to everything.
What’s a genre you like that people might be surprised you listen to?
Reggae. I like Bob Marley.
You recently played Coachella, how did that come about?
I got invited by Becky G — shoutout to Becky. She’s been too kind to me in my career, and done a lot for me. And she knows she has a friend [in me]. They got in touch like a week before, I was so excited and pretty shocked. It was so good, [the crowd] accepted us. People did scream a lot, it was a surprise for them.
What is the biggest challenge you’ve faced along your path so far?
The biggest thing I’m dealing with right now is not being with my family. Being on tour non-stop. That’s what people don’t see. They think I’m a working machine, but I’m not. But it’s part of what I like to do — it’s part of my character.
How do you deal with those moments?
When I feel like that, I just talk to my mom and my family and that keeps me motivated. They’re pretty proud of me and thankful.
You also did Jimmy Fallon recently, how was that?
It was awesome for me and my whole group. It was a new thing for us because it was our first time on TV and it was Jimmy Fallon. I think it went well, everyone watched it and wanted to see me perform, and I’m just thankful for Jimmy for inviting me to the show.
You recently broke a record along with Eslabon Armado, becoming the first regional Mexican song to top Billboard’s streaming songs chart.
That’s pretty amazing. But that doesn’t mean anything, because tomorrow I could be gone. We don’t know. I’m just gonna keep working to get where I wanna get. There’s a long way to go.
You’ve had a lot of big collaborative moments — what’s the role of collaborations in your journey?
Collaborations have been so important in my career. I’m just thankful to too many artists who have been supporting my project, ideas and thinking and what we have to do for the genre. My album is coming too and I have a lot of solo songs coming, and that’s what people want to hear, so that’s what I’m giving them on this album.
You’re heading out on tour soon, but so much has changed since your tickets went on sale. Are you looking for bigger venues?
Yes. Everything changed and I’m looking forward to what’s gonna happen. And my team is looking for venues. I’m sure I’m gonna do good if I do small or big venues. The tour sold out the first day, like 95 percent [of tickets] in two hours. We’re pretty excited.
Looking ahead, what’s something you hope to accomplish in your career?
I just wanna go to the Grammys and win something, you know? There’s too many things I wanna accomplish. I want to have my album be welcomed by the people, I want it to have the same streams as singles do. I’m showing another part of la doble p to people.
I know this is far in advance, but as someone who grew up between Texas and Mexico, where do you see yourself settling down when it’s all said and done?
I don’t know. I mean, Peter Parker is from NYC and I’m in L.A. right now. Guadalajara will always be my home. That’s where my family is, and Sinaloa too. But I feel pretty good here in L.A. And if life says, “Go to Miami in a year,” I’ll go to Miami.
In a presentation at the Music Biz conference in Nashville on Wednesday (May 17), MIDiA Research’s Tatiana Cirisano revealed the company’s predictions about the future of music streaming. Namely, the firm suspects that music streaming revenue growth, which has been in the double digits for years, will slow to the single digits, eventually cooling off from about 10% growth in 2024 to 3% growth in 2029.
“We’re in a crazy time for competing for consumer attention,” said Cirisano during the presentation, titled Where Does Streaming Go From Here? She noted that after the pandemic subsided, content providers of all kinds — from music to gaming to video — have had to accept that more traditional, in-person activities are absorbing large amounts of time for consumers once again. “The era of build it and they will come is starting to come to a close,” she continued. “You need to give people reasons to spend time on your platform.”
As part of the return to in-person experiences, MIDiA Research has found that background consumption of entertainment is on the rise, with 18.1 hours of background consumption in the first quarter of 2021 having escalated to 20.6 hours in the second quarter of 2022.
Traditional streaming services — Spotify, Apple Music, Amazon Music and other competitors — also face competition for users’ attention from “non-[digital service provider] streaming,” or platforms where music is part of the experience but not its sole focus, such as Peloton and TikTok. “We are starting to learn that non-DSP streaming is not just additive, it might actually also diminish the cultural capital of [traditional] streaming,” said Cirisano.
While the cultural capital of streaming reached a fever pitch as Spotify editorial playlists, like Rap Caviar and New Music Friday, became many listener’s go-to source for music suggestions, MIDiA’s data suggests that that “soft power” is starting to wane, giving way to sites like TikTok which promote what Cirisano called “lean-through” music consumption.
This can be a positive thing, she explained. While “lean back,” or background, consumption — such as pre-programmed playlists and radio play — is on the rise, young people are also more likely than ever to not just “lean forward” (meaning they program what music they listen to themselves) but to “lean through,” which Cirisano defined as creating social content, curating content and re-creating content with music. MIDiA has found that the average 16 to 19-year-old spends 3.7 hours per week creating content as of the fourth quarter of 2022. More than ever, young people want to be actively playful and interactive with their music, not just listen to static playlists on streaming — though that form of listening will still surely persist.
To Mark Mulligan, MIDiA’s founder, this is a repeat of history, said Cirisano. Prior to recorded music, live bands’ music would be impacted by the audience in front of them. Now, this has taken on a new form in the age of social media, AI and at-home recording technology, signaling a return to interactivity present throughout the long history of music — and marking a change in appetite from the “isolating” and “hyper-personalized” nature of today’s popular music streaming services. “This new generation wants to be more actively involved in music… I think you’re going to have an advantage if you’re an artist that is comfortable engaging with your fans,” said Cirisano.
MIDiA Research has also found that with the emergence of hyper-personalized algorithms on streaming and social platforms, listenership fragments significantly. This leads to superstars having less of an impact, making it harder for that class of artists to earn a fruitful living from just streaming alone. In tandem with creating content and forging brand partnerships, however, these bigger names can capitalize on their fandom. This atomization of the mainstream is also pushing DSPs to differentiate themselves by, for example, focusing on genre, like Apple Music Classical, or targeting audiophile listeners, like Tidal.
In the future, MIDiA’s data suggests that next-generation platforms will create three-sided marketplaces that operate as self-contained virtuous circles. Audiences will consume music, some fans in the audience will also create using the music, and that consumption and participation will signal the algorithm and distribute the music to new fans.
UPDATE: This story was updated May 17 at 7:59 p.m. ET to note that music streaming revenue growth — not music streaming subscription growth, as incorrectly stated in a previous version of the story — is expected to fall to 3% by 2029. It was also updated to note that background consumption of all entertainment, not just music, is on the rise.
As Spotify continues in its quest to remain top dog among streaming music brands, the business adds 11 new languages and dialects to its mobile app — bringing the total number of languages on its platform to 74.
With immediate effect, Spotify’s mobile app now also supports Spanish (Argentina and Mexico), traditional Chinese (Hong Kong), Arabic (Egypt, Saudi Arabia and Morocco), Basque, Bosnian, English (U.K.), Galician and Macedonian.
The latest rollout follows Spotify’s initial launch with 27 languages, and a second major expansion in March 2021 with 36 languages.
“This expansion will unlock an even more personal experience for our users,” reads a corporate statement, “giving them the ability to access Spotify in their native or local tongue.”
And the “more people who can use Spotify,” the message continues, “the more connections we can foster between creators and their audiences.”
Spotify already connects hundreds of millions of music fans with its catalog.
The Sweden-originated tech company ended 2022 with 205 million subscribers, up 5% from 195 million in Q3, with 295 million ad-supported listeners, up 8% from 273 million in the previous quarter.
Annual revenue for 2022 came in at 11.7 billion euros ($12.4 billion), up 21% from the previous year.
During an earning call with investors late January, CEO Daniel Ek admitted some shortcomings in the company’s strategy, and admitted that matters would “change” with regards to investment in podcasting and its recent “tightening” of spending.
“In hindsight I probably got a little carried away and over invested relative to the uncertainty we saw shaping up in the market,” he explained. “So we are shifting to tightening our spend and becoming more efficient.”
Click here to see all the languages supported by Spotify and head here to change your Spotify language settings.
Miley Cyrus can buy herself flowers — 1 billion of them, to be exact. On Thursday (May 4), the pop star’s anthemic hit “Flowers” broke yet another record by becoming the quickest song to reach 1 billion streams in Spotify history.
The onetime Hannah Montana star took to social media in conjunction with the streamer to celebrate the 10-figure benchmark, writing, “Some Flowers never fade,” and adding, “Thanks to all the fans” below the graphic of the singer emblazoned with “Billions Club” in front of her.
Fans deluged the comments section of the post with congratulations for their queen. One follower wrote, “Miley you deserve this and more. It’s been 10 years since I became your fan and it makes me proud to see you are still relevant.” Another gave a knowing nod to Star Wars Day, writing, “May the 4th be with her.” A third clamored for the singer to hit the road in support of her latest studio album Endless Summer Vacation, declaring in all caps, “NOW WE NEED THE TOUR.”
“Flowers” hit the billion-stream milestone in a record 112 days since its release on Jan. 12 as the lead single from Endless Summer Vacation. Since then, it’s spent eight nonconsecutive weeks at No. 1 on the Billboard Hot 100 and topped Billboard‘s Global charts for even longer at 12 weeks on the Global 200 and 13 on the Global Excl. US tally.
The song has also broken record after record on its journey to the Billions Club — particularly outdoing itself by becoming the most-streamed song in a single week for two consecutive weeks and earning a rare hat trick by simultaneously topping Billboard‘s Pop Airplay, Adult Pop Airplay and Adult Contemporary charts.
Check out Cyrus and Spotify’s celebratory announcement below.
Nir Zicherman, the executive overseeing Spotify’s audiobooks expansion, is leaving the company at the start of October after more than four years as an executive at the audio giant.
In an interview with The Hollywood Reporter, Zicherman — currently the the vp and global head of audiobooks at Spotify — said he is departing to return to his “entrepreneurial roots with a new project in the startup space.” Zicherman first joined Spotify in 2019 after the company acquired Anchor, the podcasting platform that Zicherman co-founded with Michael Mignano, as part of Spotify’s podcast product division. He was later tapped to oversee Spotify’s growing audiobooks business, which formally launched last September with an à la carte model but has faced setbacks in user adoption in part due to Apple’s App Store policies around in-app purchases.
“After a total of 9 years working across Spotify and Anchor, I’ve decided that it’s time for the next chapter in my career,” Zicherman, whose last day is Sept. 30, told THR in an email. “I’m extremely proud of the work the team has done, and now that we’ve successfully established a foundation, I’m excited about what’s next for audiobooks at Spotify — but I’m an entrepreneur at heart, and on a personal level, I’m excited to be getting back to the startup world. I felt that now was a good time to begin that transition, as the team at Spotify is set up well for success in our future work.”
As Spotify begins the search for Zicherman’s successor to lead the company’s audiobooks product strategy, Spotify’s vp business affairs, David Kaefer, will continue overseeing the business side of the audiobooks expansion.
Zicherman, whose upcoming departure was first reported by The Verge, is the latest in a string of podcast-adjacent executives at Spotify to leave. In the past year, those exits have included Courtney Holt, a major dealmaker for Spotify’s podcasting expansion; Mignano, the Anchor co-founder who left to become a partner at Lightspeed Venture Partners; and Dawn Ostroff, the chief content and ad business officer.
In addition to Zicherman, upcoming executive departures include Max Cutler, the company’s top creator partnerships executive and founder of the Spotify-acquired podcast studio Parcast, who is set to leave in May. In announcing his decision to leave in February, Cutler told staff that he was similarly leaving Spotify to “return to [his] entrepreneurial roots” and launch his own venture, though has not yet shared additional details on that business.
This article was originally published by The Hollywood Reporter.
Spotify founder/CEO Daniel Ek is meeting with members of the United States Congress and the Biden administration this week in Washington, D.C., to urge them to pass legislation that would rein in the “stranglehold” companies like Apple have over the competition on their app stores. The executive revealed in a Wednesday (April 19) post on Spotify’s For the Record blog after teasing in a tweet on Sunday that he was headed to the U.S. capital.
The Open App Markets Act — which was introduced in August 2021 and which Ek has previously lobbied for — would bar Apple, Google and other app stores with more than 50 million users from forcing app developers to use their payment systems as a condition of distribution. It would also block app store owners from punishing app developers if they extend deals to customers or offer their app for lower prices elsewhere.
While the bill was advanced by a Senate committee last year, no further action was taken. With this trip, Ek is looking to train a renewed spotlight on the bill, which he hopes will be resurrected for a wider vote by the new Congress.
Apple has lobbied against the bill, arguing that it could lead to consumers loading apps onto their smartphones from places outside of its centralized app store, introducing potential privacy risks.
Apple did not respond to a request for comment for this story.
Ek has argued that Apple and others act as anti-competitive gatekeepers because the terms required for inclusion in their app stores prevent Spotify and others from telling consumers about new products or deal offers.
“Apple prohibits competition by not allowing developers to discuss new products, features, and deals with their own users,” Ek wrote in an editorial posted to Spotify’s blog on Wednesday (April 19). “For instance, Apple promotes deals for Apple Music to Spotify customers, but denies us the same privilege.”
Read Ek’s full editorial on Spotify’s For The Record blog here.
Spotify is targeting radio broadcasters with its latest product update that will make it easier to convert radio shows into on-demand podcasts and offer a new source of ad revenue on existing content.
Beginning Thursday, Spotify’s “broadcast-to-podcast” technology will be fully integrated into Megaphone, the podcast ad tech and hosting platform that Spotify acquired in late 2020. The radio-to-podcast conversion technology itself comes from the Australian podcasting platform Whooshkaa, which was purchased by Spotify in 2021.
Using Megaphone, publishers will be able to input the URL to a live stream of their broadcasted content and automatically have a podcast created from that programming, according to Emma Vaughn, Spotify’s global head of advertising business development and partnerships. The “broadcast-to-podcast” tech will identify ad marker locations, giving publishers the opportunity to remove the ads that were originally aired on the live version of the program and dynamically insert new ad spots in their place, resulting in more revenue.
Companies using “broadcast to podcast” can continue to sell their own ad inventory or, in the near future, do so through the Spotify Audience Network, the audio giant’s ad marketplace.
“These publishers obviously have a ton of content that they create. The libraries are massive, [but] they don’t always have a full podcast operation that’s set up, [so] creating podcast-only content might not make sense for them,” Vaughn told The Hollywood Reporter. “That’s where ‘broadcast to podcast’ comes in because it’s seamless and allows them to join the ecosystem.”
As part of the initial rollout, publishers like Fox Corp. — which has an existing advertising and distribution deal with Megaphone for its Fox Audio Network — will use the conversion technology to create on-demand podcast versions of the broadcaster’s radio programming, though Vaughn said the goal is to attract publishers and broadcasters around the globe that “previously weren’t able to access Megaphone and access the podcast ecosystem.”
The executive also noted that converting radio programming into podcasts could give radio broadcasters a better chance at expanding their reach to Gen-Z listeners.
“More and more people are listening to content via these digital channels,” Vaughn said, “so it’s going to be able to bring some of this broadcast content that was maybe more isolated to a certain type of demographic to the Spotify demographic and to these young audiences that they haven’t been able to capture before.”
This story was originally published by The Hollywood Reporter.
As the music industry becomes increasingly conscious of — and vocal about — the challenges of the streaming model, fraudulent streams have become a source of growing frustration. “Every penny that goes to a fraudulent stream is a penny that doesn’t go to a legitimate stream,” says Richard Burgess, president and CEO of the American Association of Independent Music. “Fraudulently increased stream counts can affect recording budgets, licensing deals, catalog valuations and can result in the misallocation of marketing budgets.”
The French government, which recently published the results of a months-long, country-wide investigation into streaming fraud, portrayed understanding the impacts of this activity as an imperative. “The stakes are high in our country as well as in the rest of the world: the development of music services, which can be free and financed by advertising, or paid through subscriptions, as individual or family plans, constitutes a tremendous opportunity for the music sector, after years of a long crisis,” the report asserted. “…Such growth whets the appetites and stimulates the creativity of those who seek to abuse the system.”
“The multiplication of fake streams, that is to say the processes allowing [bad actors] to artificially boost play counts or views to generate an income, is nothing short of theft,” the report continued.
The French study, conducted without data from YouTube, Apple Music, or Amazon Music, found that 1% to 3% of plays were fraudulent, while also noting somberly that “the reality of fake streams goes beyond what is detected.” BeatDapp, a Vancouver-based company that creates fraud detection software for labels, publishers, distributors and streaming services, believes the global level of fraud is higher. “In 2020, estimates were 3 to 10% of all streaming activity was fraud,” the company wrote in 2022. “Today, we confidently say it’s at least 10%, and more in some regions. That equals ~$2B in potentially misallocated streaming revenues this year, and will be ~$7.5B by 2030 if left unchecked.”
So what forms does streaming fraud take? According to Burgess, the practice “covers a multitude of techniques used to increase stream counts or impressions by other than legitimate means.”
Here are three of the most common:
Bots
Discussion of streaming fraud often turns quickly to bots, which Burgess defines as “automated software that can be used to generate views, streams or interactions.” To detect bot activity and prevent it from affecting royalty payouts, companies build models that trawl streaming data and look for listening patterns that appear anomalous: BeatDapp likes to discuss an example of finding tens of thousands of accounts all streaming the same 63 songs.
“If I’m trying to push numbers up, I’m going to do it across streaming services in a subtle fashion this way,” BeatDapp co-CEO Andrew Batey says. “Spread it across a lot of accounts and multiple platforms, and you can drive a significant number of plays with no one looking.”
Click Farms
Streaming services are looking for suspicious play patterns that don’t reflect human behavior. Fraudsters are aware of this, so they try to camouflage their activity in ways that appear human. One method is to get actual humans to press Play through what are known as “click farms.”
Eric Drott, a professor at the University of Texas in Austin who has written about streaming fraud, describes these as “enterprises concentrating low-paid, precarious workers who are engaged to perform the sort of rote, repetitive tasks that keep the flows of digital capitalism moving: creating social media accounts, moderating content for platforms, clicking online ads, liking or rating items and, of course, generating plays on streaming services.” Accounts that stream music 24 hours a day or stem from a smartphone that never moves or dips below 100% power could be evidence of click-farm activity.
Imposters
A third prominent form of fraud identified by Burgess involves impersonating creators by uploading a version of their song to streaming services and illegally collecting creators’ legitimate royalties. This is a common problem faced by artists who are having a moment on TikTok, for example: Imposters post a version of the TikTok hit on streaming services under a slightly different name, aiming to divert some streams (and hopefully royalties) their way.
“It happens to every single viral artist,” says one manager who shepherded a viral act to a major-label deal last year. There are many distribution companies out there, and managers say that some of them have lax oversight of what’s being uploaded to the DSPs through their platforms. This means artists and their teams have to keep close watch on streaming platforms and issue takedowns when they find imposter versions.
MUMBAI — India is driving Spotify’s international expansion, vaulting into the top five territories in total users for the platform after just four years of operation in the country.
“India is the single market that has contributed the most to our global growth over the last year,” says Gustav Gyllenhammar, Spotify’s vp of markets and subscriber growth. The company’s user count in India has tripled over the last two years, according to Gyllenhammar.
Spotify did not provide numbers, but Comscore estimates the platform has about 55 million monthly active users (MAUs) in India, and Spotify is the country’s top audio-streaming service in terms of engagement, with nearly 10 billion tracks streamed in India in January alone, sources close to the company say. Last year, Spotify says, Bollywood playback singer Arijit Singh tallied more streams on the app than Beyonce. Then in January, Singh broke into the top 10 of Spotify’s Global Top Artists chart, even though most of his plays were in India.
Despite this, India is not a top five revenue market for the service, Gyllenhammar says, demonstrating the limits of the country — which has 1.4 billion people and is expected to soon pass China as the most populous nation — as a music market. Multiple factors are at play, including India’s significantly lower per-stream payouts, a resistance to paying for music subscriptions and the challenges of a market with two official languages and another 22 regional ones.
India was the 17th-largest recorded-music market in 2021 with $219 million in revenue, up 20% from 2020 and driven largely by streaming, according to IFPI’s Global Music Report. But at just $0.16, its per-capita music revenue is among the lowest in the world.
India’s economy is one of the world’s largest, but a 2022 report by the International Monetary Fund ranks its per-capita income at 140 out of 190 countries, which contributes to the problems streaming services have in getting more consumers to pay for subscriptions. A monthly Spotify subscription costs 119 rupees ($1.45) compared with $9.99 in the United States. Gyllenhammar says the service doesn’t plan to increase prices in India in the near future.
India’s streaming market is estimated to have over 300 million MAUs. (For comparison, there are 219 million in the United States.) When Spotify launched there in 2019, it was the eighth major audio-streaming service to enter a market ruled by local streaming services Gaana, JioSaavn and Wynk. Since then, it has overtaken Gaana, which has turned into a subscription-only service after talks for an acquisition by Wynk’s parent, the telco Bharti Airtel, fell through. JioSaavn, which saw an overhaul of its top management last year, has witnessed a fall in engagement.
Though JioSaavn and Wynk still have more MAUs than Spotify, 20.1% of respondents picked Spotify as their favorite music streaming service, compared with 4.9% who chose either JioSaavn or Wynk, in a study conducted last year by IFPI and the Indian Music Industry, the country’s recorded-music trade group. (YouTube topped the list with 46%.)
Spotify’s closest competition for engagement, according to industry insiders, is ByteDance-owned Resso, which officially launched in India in March 2020 as one of three test markets for the app outside of China. (Indonesia and Brazil are the others.) Resso, they say, has a stronger presence in smaller cities and tallies a similar number of streams. But it’s been growing at a slower rate than Spotify and has been affected by the loss of Sony Music’s catalog — which includes several hit Indian film soundtracks — after Sony removed its titles from the service in September.
Indian music executives say Spotify has better technology for generating algorithmic recommendations and playlist personalization — and that gives it an edge over domestic rivals. It also emulated its local competition by emphasizing the importance of regional-language music and by creating a generous ad-based tier.
In India, Spotify offers a mobile-only “mini” subscription where users pay 7 rupees ($0.09) per day. It offers ad-free music on phones, group listening sessions and downloads of 30 songs per device. There aren’t any restrictions on the number of songs free users can stream in the ad-based tier.
A Focus On Servicing Local Languages
Today, in addition to English, Spotify offers its service in 12 Indian languages, including Hindi, Bengali, Punjabi and Urdu. To focus on local languages, Spotify has had to customize its operations. “Until we came to India, most [of our] markets [were dominated by] one or two languages,” says Amarjit Singh Batra, GM/managing director for India. “The whole structure, from the teams to the way we work to how we look at recommendations, curation — every piece had to be re-looked at.”
Local content accounts for about 85% of listening on domestic platforms like JioSaavn and Wynk, for example, but initially only made up 20% to 30% of Spotify streams in the market. “When we launched, consumption looked very similar to many other countries globally, [which is] predominantly international English-language music,” Gyllenhammar says. Then Spotify pushed to expand its audience beyond India’s big cities, and today, out of Spotify’s 184 markets, India has the highest share of local consumption, at 70%.
During the pandemic, as competitors tightened their budgets, the Swedish company says it spent heavily on nationwide and region-specific advertising and marketing — including ads on broadcast and streaming TV. “We have never paid so much attention to marketing in any single market,” says Gyllenhammar. The platform has run marketing campaigns in Hindi and English, as well as the four main languages spoken in south India: Telugu, Tamil, Kannada and Malayalam.
Spotify has also resisted pressure from labels to ensure their songs feature at the top of playlists, which music companies had come to expect from Indian platforms. “They keep looking at Spotify to be something like that,” says Padmanabhan “Paddy” NS, Spotify’s head of artist and label partnerships. Instead, Spotify realized early on the potential of independent and non-film music and showcased them through playlists and programs such as Radar. The strategy paid dividends during the pandemic when the closure of cinemas led to a paucity of new soundtrack releases, which local platforms had relied on.
Since it launched in the country, Spotify has more than doubled its number of India-based employees, Gyllenhammar and Singh say, and they’re planning to expand their India ad sales teams five-fold by the end of the year. (They decline to share how many people the company currently employs in India.)
While India is primarily a low-price, high-volume play for Spotify, the country offers tremendous growth potential. It has the second-largest share of internet and smartphone users in the world (after China), at about 658 million, though that’s just under half of its total population. (The United States and the United Kingdom both have 90% internet penetration.) “If you look at other sectors online, whether it’s in search or social media or e-commerce, [India is] a billion-dollar market for the global players,” Gyllenhammar says.
Singh Batra says Spotify’s focus over the next four years will be on reaching “a level where the audience for each and every core [Indian] language is able to say, ‘Spotify is for me, for my region.’” By focusing on regional-language listeners, Spotify aims to gain new consumers in smaller cities and rural areas, as well as by pulling customers from JioSaavn and Resso, which dominate those regions.
The company says it’s gaining subscribers in India at a faster rate than total users. In 2022, premium subscriptions grew by 85% and MAUs by 80% year on year. Spotify executives say they see India following the same growth path as Latin America, where the level of paid users is now about the same as the global average of 40%.
It took eight years after Spotify launched in Brazil in 2014 for the region to reach that 40% level, Gyllenhammar says. “It didn’t happen in the first four years,” he observes. “It happened during the second phase of those eight years. So similarly, for India, the next four years is a period where we will see improvement on this side.”